let me give some instances where arman was kind-of ahead of the curve in some aspects.

1. doing mfi and non mfi businesses under separate entities. rbi has norms regarding how much non mfi business an mfi lender can do. by having separate entities, arman doesnt face these constraints.
2. they started individual unsecured lending much ahead of peers in 2017. that too as a completely separate business from mfi, with completely different set of borrowers as well and no overlap with their mfi borrowers. other mfi’s have only recently started individual lending that too to their higher cycle mfi borrowers. by setting up their msme business as a separate vertical, they established separate lending norms, collections processes, operations etc. which they have been replicating since then. only recently under pressure from their own mfi team, arman has started individual lending to their higher cycle mfi borrowers.
3. they have been almost always the fastest movers in switching off business (during demon and covid), biting the bullet and taking the pain early on (no mass scale deferrals/restructurings, taking provisions quickly) and this enabled to recover faster than peers.
4. piloting newer businesses such as rural 2W, gold loan (dropped; for now), micro LAP (start-stop and now started again after getting due comfort in their underwriting and other processes), exploring other businesses such as cv etc.

they were also the earliest to call out that the pre covid credit cost levels of around 1% are a thing of the past. at that time they had said they expected 2-2.5%. which did come about. and now they think it could be higher. whether it is temporary and whether it would settle back to 2-2.5% levels, only time will tell.

whether it can fall more, whether it can become cheaper? sure it can. i dont know.

how soon will dust settle down for mfi sentiments, if at all, is also tough to guess/gauge for now.

like i said it is a waiting game, and it is quite alright if anyone does not want to play it. its tough to suggest a buy in any mfi at the current juncture.

This must be an older document right?

Mankind Pharma –

Q1 concall and results highlights –

Revenues – 2893 vs 2579 cr, up 12 pc
Gross profit – 2081 vs 1759 cr, up 18 pc
Gross margins @ 72 vs 68.3 pc, up 370 Bps
EBITDA – 686 vs 655 cr, up 4 pc ( margins @ 23.5 vs 25.5 pc ). Adjusted for one time M&A related cost, EBITDA would have been 728 cr, margins would have been 25 pc
PAT – 543 vs 494 cr, up 9 pc

Cash on books @ 3750 cr

Domestic sales grew by 9 pc ( growth in domestic business impacted by delayed onset of anti – infective season )

Export sales grew by 62 pc !!!

Domestic : Export sales ratio @ 91 : 9

Chronic : Acute sales ratio @ 39 : 61

Company’s domestic Mkt share share @ 6.1 pc ( second largest after Sun Pharma )

In Q1, Company Acquired Bharat Serums and Vaccines for 13,630 cr. This translates to 22-23 times FY 25 EBITDA that BSV is expected to clock. To be funded by cash on books, debt and Equity ( if required ). Transaction expected to close in 3-4 months

Some brands where BSV enjoys 100 pc Mkt share in India are –

Rhoclone ( Injection – prevents formation of antibodies after a person with Rh-Negetive blood is given a transfusion with Rh-positive blood ) – FY 24 sales @ 180 cr

Thymogam ( immunosuppressant injection )- FY 24 sales @ 32 cr

ASVS ( anti Venom Injection ) – FY 24 sales @ 41 cr

Other dominant brands where BSV is no 1 / 2 in domestic mkt are –

Hucog ( infertility treatment – injectable )- FY 24 sales @ 63 cr
Humog ( supports ovulation – injectable ) – FY 24 sales @ 55 cr
Luprodex ( used in treatment of prostate cancer – injectable ) – FY 24 sales @ 37 cr
Foligraf ( infertility treatment – injectable ) – FY 24 sales @ 35 cr

BSV ltd reported sales of 1723 cr with 28 pc EBITDA margins for FY 24

Company in-licensed Symbicort ( inhaler – for Asthma ) from Astra Zeneca and launched in Q1. Seeing good traction

Also in-licensed Inclisiran ( lipid lowering – injectable ) from Novartis in Q1

Company’s OTC business reported flattish sales @ 206 vs 208 cr. Their popular OTC brands include – GasOFast, PregaNews, ManForce, AcneStar, Unwanted 72, HealthOK

Company’s EBITDA margins in their OTC / Consumer Healthcare business are @ 20 pc

After the acquisition of BSV ltd, company shall emerge as the No 1 player in the Gynae therapeutic segment

Capex for Q1 @ 125 cr

For FY 25, company is guiding for EBITDA margins for 25-26 pc

Company’s EBITDA margins in Q1 did not rise despite the sharp rise in gross margins as the company launched a number of new products in Q1 and there were higher marketing spends in Q1 to support them. These spends should moderate going forward

Company believes that BSV’s business is under – levered and Mankind’s distribution can help improve growth and margins of BSV’s business

The difference in gross margins of Chronic vs Acute business are > 10 pc ( similar figures were given by Alkem Labs in their Q4 or Q3 concall LY … quoting from memory )

Company’s In-Licensed brands give them a foot in door when it comes to high end Hospitals / Clinics / Doctors. These deals do enhance the company’s reputation in a big way + these In-Licensed products are limited competition products

Company believes, it can sustain 70 pc kind of gross margins in the medium term

There will be merger related costs that ll come up in Q2 as well

Company may raise around 3000 cr via equity route to fund the BSV ltd acquisition. At current valuations ( that Mankind trades, I think it makes sense to raise equity )

Confident of accelerating the BSV Ltd’s growth rates to much higher levels due to speciality + complex to make + monopoly products ( under patent ) – that BSV offers

Disc: holding, should do well over medium term ( IMHO ), biased, not SEBI registered, not a buy / sell recommendation

Zomato has come out with good numbers in Q1FY25. Food delivery Gov grew 27% with margins of 3.4% and Blinkit GoV grew 130% at breakeven margins. Blinkit added 113 stores on base of 526 in the quarter (~20% growth)

The key points I am tracking from my earlier post here –

• In Q4FY24 letter, management said there will be pressure on margins in blinkit business due to rapid expansion in stores but on positive note the margins have improved QoQ despite expansion.
• Also management gave target to have 1000 Blinkit stores by FY25, now they have given 2000 as optimistic target by FY26. This is 3x growth from current number. Today average GoV per store per day is 10 Lac. This number has increased despite rapid expansion in last year. Even if this sustains at 10L and 2000 stores are online by FY26, GoV can be 60-70K Cr. At 2-3% Ad. EBITDA margin (less than management’s vision), Adj. EBITDA from Blinkit can be 1500-2000 Cr in FY26 itself. This is upward revision to my estimates earlier when I was estimating GoV to be 1000-1500 Cr from Blinkit in FY27
  – Add to this 2000-2500 Cr of Adj. EBITDA from Food delivery, total Adj. EBITDA can be 3500-4500 Cr in FY26 and they might end up beating my FY27 estimates of 4000-4500 Cr Adj. EBITDA

You can pick up any of the previous sheets shared and update.